opinionfandomcom-20200213-history
WE ARE NOT HEADING INTO A DEPRESSION!!
by Jaxhawk Sep. 30th, 2008 | 10:35 am The truth never needs to be explained or apologized for.It stand alone as a sentinel for freedom of expression. The Left Wing Media and the Democrat party are desperate to convince the voters that the Economy is on the precipice of another "Great Depression", This is the only chance the Democrats have of winning in November. They cannot win based upon their nominees qualifications and past associates! And aiding and abetting this fraud on the American voters is George Soros. He has developed an empire of so-called 527 groups, putatively independent political activists groups that have influence within the Democratic Party. These 527 groups include the Center for American Progress, MoveOn.Org, Human Rights Watch, Media Matters and a slew of other like-minded groups including The Democracy Alliance that is a major avenue to help them achieve their leftist goals. The roster of its growing membership consists of a list of billionaires and mere multi-millionaires who collectively hope to give upwards of 500 million dollars each year to further promote a left-wing agenda. source: American Thinker This Marxist leaning group is not merely out to elect Democrats, but to also permanently realign U.S. politics and shift our society and culture in a far-left wing direction. So far this election campaign they have funneled more than the 75 million dollars that they contributed to the Kerry campaign. Although I would be the last person to deny that their is a financial crisis that has been caused by leadership mis-management and government mandates that handcuffed our mortgage institutions. A look at the current financial data, will illustrate more differences than similarities between the 1930s and today: In the crash of 1929 the Dow Jones industrials plunged 40% in two months! This financial dilemma has taken a year to fall 22%. The jobless rate jumped to 25% by 1933; it is little more than 6% today. The gross domestic product shrank by 25% during the early 1930s; it is up over 3% during the past year. Consumer prices fell by about 30% from 1929 to 1933; and the last time I looked they were still rising! Home prices dropped more than 30% during the Depression vs. about 16% today. Some 40%of all mortgages were delinquent by 1934 compared with 4% today. In the 1930s, more than 9,000 banks failed compared with fewer than 20 over the past couple of years. Remember also it was policy errors, not the stock market crash, that caused the Great Depression: Instead of increasing the money supply, the Federal Reserve of that era reduced it by one-third. Instead of lowering taxes, Herbert Hoover raised them. And to channel whatever demand was left into U.S.-made goods, the government enacted the Smoot-Hawley Tariff Act to keep out foreign products; this only provoked our trading partners to do the same. Add to this today's automatic stabilizers such as unemployment insurance and Social Security, the FDIC to insure bank deposits and circuit breakers to keep stocks from falling too quickly, and you can see why this is not a depression in any way shape or form. source: Wikapedia It is a fact that there is the ongoing decline in home prices. Nothing that the government did over the weekend will keep home prices from falling further. You don't have to be a rocket scientist to figure out why home prices are dropping: it's nothing more mysterious than too many houses for sale at prices well above what buyers can (or are willing to) pay! Once home prices stabilize buyers will be willing to step off the sidelines and start shopping for homes. The banks will also want to see steady prices before they will even think of making a home loan; they don't want borrowers to become "upside-down" as soon as they take out the loan! A little known casualty in this collapse of Banks not only in the USA but in Great Britain is the "lend to buy" debacle that brought down one of England's largest banks. The U.K. became a nation of landlords, with seemingly half the prime-time television slots devoted to the subject of how to make it rich by buying and letting. The stories of clueless hacks who still made a killing epitomized a crash waiting to happen -- and with it, Bradford and Bingley, the number one buy-to-let player. And yet that's not the full story either. House prices are down, but the feared flood of buy-to-let houses coming onto the U.K. housing market hasn't (yet) happened. What killed off B and B was made in America. GMAC, formerly the financing arm of General Motors (which still has a hefty stake) decided to expand beyond what it knew, loans for cars, into what it didn't, loans for houses. And then "humptey dumpty fell off the wall"! A not-so-bright decision maker at B and B bank,thought it wise to take the mortgage portfolio that GMAC originated, to the tune of about $700 million each quarter. Last spring Bradford and Bingley announced that (shock shock) the GMAC portfolio wasn't doing so hot. It's been a downward spiral ever since! source: Market Watch There is plenty of blame to go all around, but it certainly is no reason to jump out of the frying pan into the fire, by voting for a avowed Social engineer who only knows how to spend more of the tax payers hard earned money! __NOEDITSECTION__ Category: Opinions Category: Opinions by User Jaxhawk Category: September 30, 2008 Category: September 2008 Category: ECONOMY Opinions Category: ELECTION Opinions Category: DEPRESSION Opinions Category: STATISTICS Opinions Category: COMMENTARY Opinions Category: OPINIONS Opinions From The Opinion Wiki, a Wikia wiki. From The Opinion Wiki, a Wikia wiki.